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Highlights—June 4 , 2005
- Cooper v. IBM Proposed Settlement for
Subclasses 1 and 2. Excerpts: This site contains information
regarding the proposed settlement of the claims of members of Subclasses 1 and 2 in the lawsuit
entitled Cooper v. IBM Corporation and IBM Personal Pension Plan.
This site provides the following information:
The content of this Web site has been approved by IBM and the counsel for Subclasses 1 and 2.
- Important Dates;
- The Notice approved by the court and sent to eligible class members of Subclasses 1 and 2 describing
the proposed Settlement;
- The Settlement Agreement;
- Frequently Asked Questions regarding the case and the Settlement;
- Other Important Contact Information. [...]
- Yahoo! message board: "Re:
$125 per month" by "madinpok". Excerpts: I think there is probably a lot of
misunderstanding about what
the lawsuit is about and what the settlement addresses.
Some of the changes IBM made in the 1995 and 1999 plans are
allowed under the law. The most significant thing is that
IBM changed the future accrual rate of the pension plan each
time. This had a major effect on the size of the pensions that
future retirees will collect. It reduced the pension for an
employee with 40 years of service from about 40% of average salary
under the 1991 S&E formula to about 35% under the PCF formula, to
about 20% under the C-B plan. Unfortunately, that part is all
What IBM did wrong, and what the lawsuit went after, is the fact
that the formulas used in the PCF and C-B plans discriminate
based on age. Older employees end up with less than younger
employees and that is illegal under the Age Discrimination in
Employment Act (ADEA). But the amounts we are talking about
here are far less than the amounts that people lost due to the
change in accrual rates.
While the settlement provides some correction for the discrimination
losses, it will not come close to restoring anyone's pension
to the amounts that the 1991 plan would have provided. I wish it
could do that, but there is no legal recourse available to make that
Still, I will happily accept whatever amount comes my way as a
result of the lawsuit. I'd rather have even a few bucks extra
a month in my pocket rather than in the executives' pockets.
message board posting by Janet Krueger. Full excerpt: All I can do is help interpret the settlement
agreement as it is written. I
cannot provide legal advice, and I do not have any power to amend the settlement
document. Like most of the other posters on this board, I am just a very
interested class member...
If you think you might be covered by the settlement agreement, but are not sure,
write a letter to class counsel asking for a clarification -- Doug Sprong's
address is included in the settlement notice.
Anyone who is in a special situation not specifically covered by the settlement
agreement should carefully read section 5, titled "Hearing on this Proposed
Settlement", on page 4 of the settlement notice. It defines the process for
filing an objection to the settlement with the court, which must be done by July
11, 2005. The section states you do NOT need to appear at the hearing on August
8, but in my experience, Judges are more likely to respond favorably when the
person with the objection takes the time to show up in their courtroom or hires
an attorney to advocate on his/her behalf.
Do not wait to see whether someone else takes care of advocating for your
situation, as objections not filed with the court by the July 11, 2005 deadline
will not be heard; the settlement agreement is a legal contract that will be
finalized by a final order issued by Judge Murphy immediately following the
August 8 hearing, so any amendments or corrections MUST be done before then!!!
Of course, groups have more power than individuals; if there is a group of you
that share special circumstances, you might want to get together...
- In a Yahoo!
message board, Janet Krueger responds to this comment: "It is
a very sick world where greedy so called businessmen
can steal pensions from men and women that worked the better part of their lives for. Now
we have to use our pension money to pay lawyers to recover what is left of our pensions. A life
time of work now rests in someone else's pocket. The law is to protect the Rich and Greedy.
There is no justice associated with our legal system." Janet responds: I mostly agree -- there
is some justice with our legal system, but not
near as much as there should be...
Please be aware that Rep. Boehner is planning to sponsor new 'pension
reform' legislation in Congress next week that will retroactively
legalize everything IBM did to our pensions. If passed, other employee
groups, who could otherwise benefit from the precedents being set by
Cooper v IBM, will have no recourse at all. Instead of potentially
getting a settlement that they would have to share with their attorneys,
they would get nothing at all, and other companies would not be held
accountable at all!!! The result would be massive pension reductions
throughout corporate America.
If you haven't done so recently, PLEASE share your thoughts on this
whole travesty with your senators and representative in Washington. In
addition to objecting to the legalization of corporate theft that is
being proposed by Rep. Boehner, there is also some good pension reform
legislation that you can advocate for -- I've uploaded a summary to the
files area of this board, and you can read it at
-- Congress has the power to either
improve or damage our legal system. They will only do the right thing if enough of
us make it clear to them that we are watching what they do, and that we
will base our votes in the next election on their behavior.
- Yahoo! message board: "Out
of Blue Lawsuit" by Janet Krueger. Full excerpt: The legal team from
Maine that is pursuing a class action-type
lawsuit against IBM for age discrimination in lay offs is hosting an
informational session in Rochester, MN at the Kahler Hotel on Friday
night, June 10, from 7pm until 9pm.
If you are an older Minnesotan who IBM let go within the last 3
years, stop in -- the information is free.
I will also be attending and will be available to answer questions
about the Cooper settlement notice for subclasses 1 and 2, which
will have been mailed by then.
- Yahoo! message board: "Meetings
with attorneys handling the IBM Age Discrimination in layoffs case" by Janet Krueger.
Excerpts: PLEASE CIRCULATE to laid off IBMers, particularly those in Minnesota and
Colorado who can attend the meeting in person. Others can attend by telecon.
Attorneys Jeff Young and Patrick McTeague will be meeting with laid off IBMers
next Friday and Saturday in MN and CO in person or by teleconference phone link
to either of the meetings. The attorneys currently represent about 200 older
laid off IBMers. Here are the details:
- Minnesota: Friday, June 10, 7-9pm, The Kahler Grand Hotel, 20 Southwest Second
Avenue, Rochester, Minnesota
- Colorado: Saturday, June 11, 4-6pm, The Hotel Boulderado, 2115 13th Street,
- Anywhere else: You can attend either of these meetings by telephone. However,
because these meetings are covered by the attorney client privilege we cannot
circulate the phone number and access code on email. So please call the law firm
during business hours to get the phone number and access code: 207 725-5581 or
The case was filed in federal court in California. We expect the appeals
there to make a decision similar to the decision made by the Minnesota appeal's
court in Dale Thomforde's case and to declare the waiver invalid as a matter of
law. That means about 10,000 older IBMers who were laid off from July, 2001 until
now and who signed the "general release and covenant not to sue" can now join
the suit. If you are one of those laid off IBMers or you know one, please
forward this note so they can consider whether to join the suit. Please contact
attorney Jeff Young or his assistant Sue Turner at the numbers below if you have
questions or would like to meet with the attorneys when they travel to your town
or by phone this weekend.
All older laid off IBMers who were laid off since July, 21 and who signed the
release are invited to come in person or to call in and participate in the meeting
by conference call.
is the news release
issued by the attorneys handling the IBM age
discrimination in layoffs case. The release describes the victory fellow IBMer
Dale Thomforde won in his case in which the 8th circuit court of appeals
declared that the release and covenant not to sue Dale signed (and that all
other laid off IBMers signed if you were laid off since July 2001) is illegal as
a matter of law.
- Yahoo message board: "Re:
Salary increase?" by "agvetsch2000". Excerpt: Well here you go. Those
of us still here at IBM can
now join our Spirit advocate in raising the bar for
The fallowing is note sent by a member of upper
IBM has long been recognized as one of the truly great
companies to work for, and we know that maintaining
this status is important to our long-term success.
This means doing the things it takes to stay on top,
such as investing in you, our most valuable asset. To get the ball rolling, IGS-Americas recently
launched the SPIRIT Initiative, with Lois Brown-Saint
Surin serving as the new director of employee
satisfaction. With the formation of the SPIRIT Center
of Excellence, Lois and her team will work closely
with us to focus on sharing best practices from IBM
and other companies in order to help us address our
key employee satisfaction issues. For Technical Support, the SPIRIT Advocate community
has been selected, and I have appointed Carol Lynn
Miller, as our Lead SPIRIT Advocate. Carol Lynn will
be coordinating our efforts to ensure we are tuned-in
to, and acting on, the most important issues.
I strongly believe in the connection between employee
satisfaction and business success, which is why I want
to see our organization embrace this initiative...and
this is where you come in. If you are interested in
playing an active role in bringing about change – to
drive new programs and initiatives that can make a
difference - send a note to your unit’s SPIRIT
Advocate, copying your manager.
- Yahoo! Finance board posting: "IBM
Layoffs Begin" by "yeatsisdead". Full excerpt:
Layoffs commence in IBM Global Services and IBM CIO Headquarters yesterday in the US, following
the Memorial Day Holiday weekend. Even management was unaware of the extent of the cuts. They
promise a major reorganization of IGS and Headquarters in the next few months.
I haven't seen any news stories on this yet. Stealth layoffs again?
- Yahoo message board: "Layoffs
yesterday in IBM U.S." by Linda Guyer. Full excerpt:
About half the people on my floor in Endicott were laid off
yesterday. All were working on web development projects in IGS with
internal IBM customers. It appears from all accounts that what IGS
is doing is leaving one person stateside on each project, and the
rest of the work is to be performed by "GR's" or global resources. I cannot express how
angry I am that IBM has spent billions of
dollars in stock buybacks but they cannot preserve a single one of
these jobs. I was "counseled" by my management last year for talking
to the press about IBM's offshoring plans, yet here we are, executing
There are about 7 of us left on my floor now, from a previously
thriving group of web developers and project managers. Work was
always coming in, we had weekly meetings to plan who would work on
what. Now the few PM's left are tasked with trying to coordinate
work from Russia, India and Brazil, often with angry internal
customers who were given no choice in the decision. There might as
well be tumbleweed rolling down the hallways. It's truly sad.
- Forbes: Palmisano's
IBM Seen Cutting 1,000 More German Jobs. By
Chris Noon. Excerpts: International Business Machines Corp (IBM) may cut about 1,000 jobs in
Germany in addition to the previously announced 580 job cuts as part of its global restructuring
plan, weekly magazine Wirtschafts Woche said in a report to be published tomorrow.
While IBM said last month it plans to cut 10,000-13,000 jobs worldwide under its restructuring
plan, with most of the cuts in Europe, it has not yet announced the total number of job cuts
Wirtschafts Woche cites sources among the company's workforce as saying Johann Weihen, head
of IBM's German operations, is planning to cut an additional 700 jobs in Germany by mid-year
and to outsource about 300 jobs by selling off several small business units.
German trade unions last month said the company may cut as many as 2,500 jobs at IBM Germany,
which employs a total 25,000 people.
- The Register (United Kingdom): IBM
UK workers in the dark as firing crunch time hits. Excerpts: More complaints have surfaced against IBM's severance and firing plans here in
the UK with critics saying Big Blue is behaving like an antiquated employer.
IBM last month warned that it would fire up to 13,000 workers - many of them in Europe and the
UK specifically. It began the job cut process by offering workers in the UK a severance package
that includes two weeks worth of pay for each year of service.
But Amicus, one the largest unions in the UK, with 1.2 million members, has challenged the process
IBM put in place to counsel workers on severance options. In particular, the union has charged
that IBM is taking an unprecedented step in requiring elected employee representatives to sign
non-disclosure agreements (NDAs), which restrict the information they can report back to the
rest of the workforce.
"We have never come across that (NDAs) before in this type of negotiation," Peter Skyte,
national officer with Amicus, told The Register. "These people can't represent the workforce
because they can't report back to them properly with the gagging conditions IBM has in place."
IBM declined to comment for this story.
One IBM staffer who requested anonymity described the voluntary severance
offer as "extremely disappointing." Amicus agreed.
"For a world-class company, IBM is not paying world-class redundancy in comparison with
some of its competitors who pay, for example, one month's salary," Skyte said.
As a point of reference, IBM's US staffers were not offered any voluntary packaged in this most
recent round of layoffs, although relatively few US staff were hit compared to European employees.
In the US, companies often offer just two weeks to two months of severance pay total not
for each year of service.
The union leader also emphasized Amicus's displeasure with IBM's overall
firing plans. The company last year boasted of its intention to hire thousands and thousands
of staffers only to end up firing almost as many staff after missing earnings expectations
in its first quarter.
"This is a knee jerk reaction to the first quarter that is aimed at boosting share prices," Skyte
said. "It's similar to 19th century farmers who hired workers for the harvest and then fired
them at the end of the season. That's no way to treat a hi-tech workforce."
- The Register (United Kingdom): IBM
Germany job cut fears tempered. Excerpts: The
number of IBM workers facing the chop in Germany has been scaled down, according to the FT.
Unions had feared that as a many as 2,500 jobs would be axed as part of IBM's decision earlier
this month to ditch 13,000 workers.
The German edition of the financial rag cites insiders who say that the 2,500 figure was a "gross
over-estimation" and instead reports that the job losses will be nearer 700. If true, then
that's good news for workers in Germany, but not so encouraging for the rest of the workforce
who are still waiting to learn of their futures.
Such is the concern about restructuring, IBM workers across Europe took
action on Monday to protest against planned job cuts at the IT giant. An alliance of works
councils, unions and employee groups did their best to try and stymie the job cuts.
A statement from the 25 groups said the move expressed "our grave concern over IBM's recent
announcement of job cuts of 10,000 to 13,000 employees worldwide.
- Workforce Management: IBM
Strives for the Security of Defined-Benefit Programs as It Shifts Focus to 401(k)s. By Jessica Marquez. Excerpts: Just months after it settled a closely
watched class-action lawsuit over its cash-balance plan, IBM has brushed itself off and is moving
on. Some may have thought the company would hunker down after agreeing to a $320 million partial
settlement with employees who claimed that its cash-balance plan discriminated against older
workers. But instead, IBM has been busy adding a suite of options to its 401(k) plan--now the only
retirement savings vehicle available to new employees--to offer employees the same type of paternalistic
help found in defined-benefit plans.
- Associated Press, courtesy of Tampa Bay Online: Federal
Rules Making the Nation's Private Pension Problem Worse, GAO Finds. Excerpts: The federal rules
designed to ensure that millions of people receive their private pension benefits are flawed,
making it easier for retirement plans to have risky financial shortfalls, congressional investigators
have found. "Our work shows that although the current system permits flexibility, it also permits reported
plan funding to be inadequate, misleading and opaque," says a new report by the Government
Accountability Office. Such federal oversight, the GAO said, does not appear to serve the interest
of any stakeholder of a private, guaranteed-benefit pension plans. [...] "The GAO report
confirms what we have been saying all along: The rules must be changed to ensure that companies
keep the pension promises they have made to their workers," said Bradley Belt, executive
director of PBGC. The agency guarantees payments of benefits earned by 44 million workers and
retirees participating in private pension plans. [...] From 1995 to 2002, 39 percent of defined-benefit
pension plans were less than 100 percent funded. In addition, on average, more than 60 percent
of the largest plans each year made no cash contribution because of rules allowing sponsors
to use credit for minimum requirements.
- New York Times: Some
Big Companies Failed to Add to Pensions in 1990's.
By Mary Williams Walsh. Excerpts: More than half of the nation's biggest companies with pension
plans sailed through the boom of the late 1990's and the bear market that followed without putting
any cash into their pension funds, using loopholes in federal law to skirt a requirement for
annual contributions, according to a new study by the investigative arm of Congress. [...] The
G.A.O. noted that when Congress enacted the pension law 30 years ago, it expected companies to
create pension funds and, at the very least, make yearly contributions equal to the amount of
benefits their workers had earned for that year. There were also special rules for catching up
quickly if the trust funds fell too far behind. [...] The investigators found that most companies
let their pension contributions lapse to some degree, even in good years. Every year from 1995
to 2002, they said, about four plans in 10 were less than fully funded. The weaker a company
happened to be, the investigators found, the likelier it was to be operating a pension fund that
was also weak and to be calculating its pension values in a way that would "depict plan funding
in a more optimistic light."
- Detroit Free News: Pension
plans put workers on notice. Trend of decreases in traditional benefits
pressures employees to plot retirement.
By Eileen Alt Powell. Excerpts: Younger workers who have many years to go before retirement can
make up the difference by stepping up their savings.
But older workers -- especially those 50 and older -- often face difficult decisions when they
find that their pension plans are being changed, because they don't have the luxury of time
to catch up.
These older workers, experts say, need to study new pension offerings carefully and weigh alternatives
that may include working longer, cutting back retirement expectations, or both.
Those were options that Janet Krueger, 53, of Rochester, Minn., faced in
1999 when International Business Machines Corp. converted its traditional pension plan to a
Krueger, a programming consultant with IBM for more than 23 years, had expected to get at least
one-third of her salary at retirement, as her father had when he retired from an engineering
career at IBM." When I first looked at it (the new plan) I was in shock," she remembers. "I
thought, 'these numbers can't be right. There must be a mistake.' "
But after talking with IBM human resources personnel and other workers, she determined that
the pension she had come to expect wouldn't be there. "I calculated that under the cash-balance plan, I would have to work until 78 to get the
same annuity (monthly benefit) I would have had at age 65 under the old plan," Krueger said.
Some disgruntled IBM workers sued the company, alleging that older workers
were being discriminated against. Krueger simply quit and, after a number of years of private
computer consulting, she has changed careers and is one year away from completing law school.
IBM, meanwhile, has announced that starting next year, new workers will be offered no pension,
only a 401(k) savings plan.
- TomPaine.common sense: The
Disappearing Pension by
Jonathan Tasini. Excerpts: Here’s a basic moral value: taking someone’s money without
their permission is stealing. Except in America, where, if you’re a corporation that takes
away someone’s pension, it’s okay. And the question is: Why isn’t the progressive
movement making a huge deal out of this?
With very little public outcry, we are letting corporate America dismantle the private defined-benefit
pension system. At the same time, huge salary and pension benefits are lavished on executives.
Remember, pensions are deferred compensation—people put off getting money in their paychecks
today because of a promise that they would receive a specific amount of money (hence, the term “defined
benefit”) many years later. It’s their money, not the companies’ money. The
private pension was a fundamental pillar of the American middle-class dream: If you saved now,
you could still have a middle-class life in retirement, and you wouldn’t have to gamble
in the stock market to do so. [...]
Beyond labor, the relative inaction of progressives is baffling. I’d
wager that millions of mainstream Americans—self-described as moderate, independents and
even social conservatives—could be moved on this issue alone. With progressives obsessing
about finding the right message to connect with Americans, I can’t think of a better issue:
They are taking your hard-earned money! Rather than hold yet another policy conference to ponder
the message, why aren’t there mass demonstrations in front of United Airlines, the PBGC,
or the courts that are allowing companies to ditch pensions?
Perhaps the answer is that the demise of the private pension is just another example of something
we are all vulnerable to: accepting pervasive corporate power in an era of diminishing expectations.
Wall Street is telling corporations that pensions just burden their financial books, retarding
stock prices. Companies, in turn, are saying that if they are forced to fully fund pensions
(which they do not have to do now), they will dump pensions. So people—many of whom probably never
had a private pension—just shrug their shoulders and put their faith in the stock market
or inflated housing values.
- Associated Press: Socialist
Leads U.S. Senate Race in Vt. Excerpt: Bernie Sanders jabs at the air, his flushed face a sharp
contrast to his unruly white hair. Yet again, he pummels Washington, the Congress and the president. "The
government that we have today in the White House, the House of Representatives with Tom Delay,
the Senate with Bill Frist, is the most right-wing, extremist government, perhaps in the history
of the United States," he tells labor activists at a May Day celebration in the century-old
"Time after time they pass legislation that benefits the rich and the powerful, and they
pass legislation that hurts the middle class, working people and low income people." [...]
Sanders says his greatest value in Congress has been to highlight issues before others even
identify them: He notes he was the first congressman to lead a bus tour to Canada to help seniors
get cheap prescription drugs and he is proud of his efforts to bring attention to a pension
dispute at IBM.
- Communications Workers of America (CWA): Health
Care Reform Could Save Money and Insure All. Excerpt: In all cases, independent analyses by a researcher specializing in health
care financing showed billions in savings through cost management and covering the uninsured,
with the universal system providing the largest savings, an estimated $1.136 trillion by 2015.
The analyses used conservative fiscal assumptions and Congressional Budget Office methodology,
the coalition said.
Without changes researcher Kenneth Thorpe, head of the Department of Health Policy and Management
at Emory University in Atlanta, said not only will costs continue to skyrocket but also the
number of uninsured Americans will rise by at least another 8 million within 10 years, to more
than 54 million.
- Washington Post: An
Urgent Case For Fixing Health Care. By David S. Broder.
Excerpts: Earlier that day, the National Coalition on Health Care released a report on the potential
savings to business, individuals and government from comprehensive reform of the beleaguered
medical-insurance-hospital system. The figures are startling -- a projected saving of anywhere
from $320 billion to $1.1 trillion in the first 10 years, even while insurance coverage is extended
to every American and stronger quality measures are put in place.
Were it not for its source, this would seem like pie in the sky. But the organization that
sponsored the briefing is one of the largest groups in the health care field, a coalition of
90 organizations with 150 million members or employees, ranging from AARP and the AFL-CIO to
Blue Shield of California and such corporate giants as AT&T, Verizon and the Principal
- New York Times: Richest
Are Leaving Even the Rich Far Behind.
By David Cay Johnston. Excerpts: When F. Scott Fitzgerald pronounced that the very rich "are
different from you and me," Ernest Hemingway's famously dismissive response was: "Yes,
they have more money." Today he might well add: much, much, much more money.
The people at the top of America's money pyramid have so prospered in recent years that they
have pulled far ahead of the rest of the population, an analysis of tax records and other government
data by The New York Times shows. They have even left behind people making hundreds of thousands
of dollars a year.
Call them the hyper-rich.
They are not just a few Croesus-like rarities. Draw a line under the top 0.1 percent of income
earners - the top one-thousandth. Above that line are about 145,000 taxpayers, each with at
least $1.6 million in income and often much more.
The average income for the top 0.1 percent was $3 million in 2002, the latest year for which
averages are available. That number is two and a half times the $1.2 million, adjusted for
inflation, that group reported in 1980. No other income group rose nearly as fast.
The share of the nation's income earned by those in this uppermost category has more than
doubled since 1980, to 7.4 percent in 2002. The share of income earned by the rest of the top
10 percent rose far less, and the share earned by the bottom 90 percent fell. [...]
The Bush administration tax cuts stand to widen the gap between the hyper-rich
and the rest of America. The merely rich, making hundreds of thousands of dollars a year, will
shoulder a disproportionate share of the tax burden.
President Bush said during the third election debate last October that most of the tax cuts
went to low- and middle-income Americans. In fact, most - 53 percent - will go to people
with incomes in the top 10 percent over the first 15 years of the cuts, which began in 2001 and would
have to be reauthorized in 2010. And more than 15 percent will go just to the top 0.1 percent,
those 145,000 taxpayers.
The analysis also found the following:
- Under the Bush tax cuts, the 400 taxpayers with the highest incomes - a minimum of $87 million
in 2000, the last year for which the government will release such data - now pay income, Medicare
and Social Security taxes amounting to virtually the same percentage of their incomes as people
making $50,000 to $75,000.
- Those earning more than $10 million a year now pay a lesser share of their income in these
taxes than those making $100,000 to $200,000.
- The alternative minimum tax, created 36 years ago to make sure the very richest paid taxes,
takes back a growing share of the tax cuts over time from the majority of families earning $75,000
to $1 million - thousands and even tens of thousands of dollars annually. Far fewer of the very
wealthiest will be affected by this tax.
- Minneapolis Star-Tribune: Wal-Mart
fights benefits disclosure in Minnesota. By
Chris Serres. Excerpts: Wal-Mart Stores Inc. does not want Minnesotans to know how many of its
workers in this state receive public health care assistance.
The world's largest retailer has denounced as a public-relations ploy legislation -- which some
state legislators have dubbed the "anti-Wal-Mart bill" -- that would create a public
list of companies whose workers are enrolled in MinnesotaCare and other government-funded health
The Bentonville, Ark.-based retail giant recently sent two executives to St. Paul to lobby against
the bill, which the Legislature may vote on in special session this month. Wal-Mart also sent
a two-page letter describing its health care benefits to every legislator in the state.
But proponents of the bill, whose chief author is Sen. Becky Lourey, DFL-Kerrick,
say the public has a right to know which employers have become a drain on the state's public
health care system. They say the bill does not target Wal-Mart in particular but is meant to
see how the state can work with companies to provide better health care programs.
In the last fiscal year, the state government spent $270.2 million for MinnesotaCare, a program
that provides assistance for people who don't have access to affordable insurance. Yet no
one in the state government knows which employers have the most workers enrolled in the program."If
it's true what people say, that big multinational companies are outsourcing health care to taxpayers,
then it would be good to have a handle on which ones," said Rep. Sheldon
Johnson, DFL-St. Paul. "It's just information."
But it's information that Wal-Mart fears, and for good reason. In other states that have compiled
such lists, Wal-Mart has come at or near the top among employers with workers enrolled in
state medical assistance. Once such findings are made public, they can be used by opponents of Wal-Mart
to stir up support for punitive measures against big-box retailers.
else get the axe? and how bout that w3.ibm.com article" by "gypseeeeeeeee".
(Warning: Lengthy!). Full excerpt: I got the axe last tuesday almost to the day of my 24th...happy
anniversary to me! damn and i really wanted that grandfather clock.
But you know what? that's of no consequence to anyone but me, and I
truly don't care...it's not as if it's a surprise or I'm unprepared,
considering i had a huge red target on my back for a while now...old
pension plan, age, years of service. Personally, I'm taking what
money I can and leaving this shithole company and not looking back.
Why stress. My health and my peace of mind and quality of life will
only improve. The last few years have been a constant source of
alternating confusion and amusement anyway. As for the
OWBPA "numbers" in the "package," well no surprises there. Vast
majority older with years in. Yeah a few in their 30s to make it look
good but whatcha wanna bet they're the ones who get the few jobs that
there are? And that we don't see the "final" revised numbers. Another
funny thing? No one I know who actually wanted to go was asked if
they would go or wanted to. Wonder how true that is in general. Oh
well...water under the bridge (no pun intended there).
So anyhow, before I got ill for 12 weeks at the end of January 2005,
I had been working 50-70+ hours a week for years, plus weekends, plus
nights, plus whatever else it took. Boy was I a freakin idiot. All it
did was get me two 3 ratings (my last was a 2, for which I had to
bust my ass so hard it made me physically ill) . While I was out on
sick leave my PDM called me to lecture me and said to me, and I
quote, "We need you out of AMS...you are messing up our utilization
numbers. How dare I have the audacity to get sick ?! With that
statement, I knew I was a goner. But hey, I happened to love my job
and to be good at it. IBM's loss not mine. Someone else's gain soon.
My PDM didn't even know I had degrees in Communications, Business,
Accounting, and Systems Analysis. It was both on my resume and in my
PD Tools skills base for the whole 5 years she erm "managed" me. I
also told her that every time we spoke. Imagine that. They tied my
hands by matrixing me into a number. Weeeeeee...
So anyway, when I returned from sick leave, I was told that IBM GS
AMS was wanting "out" of the body shop business and was looking for a
permanent long term position for me. Hahaha. Right. By networking, I
found three good jobs. They said no and never told me about the
offers. This by the way was a pattern they followed for three years
now and that I had to fight and go around more than once to keep
working. They had blocked me. Imagine that...my skill was in demand.
When I called them on it, of course they denied it and of course they
don't write anything down and haven't for years now. (Shh lawsuits
you know...we never TOLD you you have to work 53 hours a week to meet
your utilization number! we never said this or that...blah blah.) How
do these people sleep at night? Yeah so they denied it, and it was
really fun watching them squirm in my meetings with HR and my PDM and
her boss this week. I wish they coulda seen the smile on my face as I
told them exactly how not stupid I was and asked them "hard"
questions and kept saying yes you've told me that before but we all
know that's not true. I have timelines and documentation of
everything for the p)ast three years and I had all the right meetings
and told all the right people what was going on. This is more for my
sanity than anything else. You really can't stop a steamroller once
it starts moving, ya know?
And for my own sanity. I'm going and I'm not going to look back. If I
happen to fall into one of the few jobs available, I may stick
around. On my terms. But they did threaten and allude to the fact
that hey...there's severance this time and there wasn't last time and
may not be next time so ya gotta think, right? Or maybe I'll move to
Sri Lanka and work again for them someday as a contractor. Hahaha.
Right. There's way more and it gets funnier, but enough of that for
now...you'll have to wait for the novel...and I do hope you support
me by buying it. :)
So no, getting word that i was being (lol -->) reduced sucked but is
a non issue for me. I worked hard and had a sweet ride. I never took
a penny I didn't earn. My conscience is clear. But what was really
ludicrous to me was the way they are treating people who are both
leaving and staying. For example, the w3.ibm.com article that this
"Call to Action" was the headline ... 30 days to make the numbers,
said. I'm still laughing at that one. Rub salt in the wounds of the
30-day people why don't you, Sam.
Then on page two was the headline "What can you do" What I can DO is
get fired and leave in 30 days to help your freakin numbers, Sam. I
can't work because your minions wouldn't let me even though I was
highly respected and in high demand and have totally current skills.
What a spin, so spare me all the BS you fed me these past few
weeks...really. You insult my intelligence.
The better question, Sam, is what can you do? Take a pay cut? No.
Instead of firing the good, hardworking people who have not one iota
of control over their own destinies, why don't you fire your bozo
executive staff who can't seem to get a plan or a forecast right for
years now, thus setting false expectations to the stockholders.
Sam, admit that you could, by putting a moratorium on you executive
pay raises and bonuses and executive travel for one year and one week
respectively, the salaries of all the people you cut in 2005. Sam,
you are a fat cat loser and a far cry of the man I used to know in
the 80s when you still cared. But then it's not a surprise that the
power and money changed you. Happens to the best. Tell me though,
Sam, have you even once looked at a single alternative to cutting
jobs? We all know what that answer is.
Oh, by the way, the suggestion in the article of what the the IBMers
who remain can do to make the numbers? Organize your days wisely.
Hahahahahaha!!! Telling a team of highly skilled professionals to
organize their day wisely. Is that condescending or WHAT? I'm
laughing so hard on my way out the door. Speaking of condescending, I
hear BCS is now being "allowed" to woo the under $1M business. Wonder
who the short-sighted idiots who didn't allow them to before were.
Wonder if THEY still have their jobs.
Short-sighted, knee jerk reactions, Sam. You need a refresher in
Business 101 and to take Humanity 101. Before I go, I think that I
should mention there's a guy in Minsk who could do your job at 1/10th
the cost. That might save your quarter. Offshore that, fatso.
Sorry guys for the sarcasm. I do wish the normal people luck and
whatever peace and benefit you can still retain. Join the alliance
and watch out for yourselves. No one else is going to.
|Coverage on H1-B and L1 Visa and Off-Shoring Issues
- WashTech News: Outsourcing
America: A New Book Brings It Home.
By Mark Owen. Excerpts: Meanwhile, a sea change has taken place in the relations of workers
with their employers. White-collar workers, in particular, used to be considered stakeholders
in the corporations they worked for, but now only stockholders and executives are considered
such, with stock compensation used to help align them with non-worker interests. Companies
often exploit both workers and communities; they push for tax breaks in communities
where they do business, and when hey leave the area, the unemployed workers face the
tax burden. The H1B and L1 visa programs play a major role in the outsourcing process.
The Hiras show that these programs are being used to lower wages, not fill shortages.
These programs also create competition for American firms, as some workers return to
their homeland with contacts and start their own companies.
Besides outsourcing business functions, many companies have opened
R&D centers overseas. This practice belies the assertion of some economists that only low-level,
boring work is being sent overseas. Companies argue that their establishment of research
centers in other countries is designed to help them develop their overseas markets.
The authors point out, however, that many of those companies are already losing to
competition in the U.S. market and likely don't have good prospects in the foreign
markets as well. However, the one benefit the corporations will experience is the deferment
of taxes on income earned overseas. The recent tax moratorium on overseas earnings
has allowed overseas profits, most of which were sitting offshore, to be repatriated
at 5% tax instead of 35%. [...]
While the impact on IT jobs has received the most focus in the last
few years, "anything that can go over a wire" is at risk. Lawyers, architects, medical
professionals, and others are starting to be impacted. While some economists hope that a next
big thing will replace the IT boom, the authors warn that other countries with competitive
IT policies also have similar plans for biotech and nanotech. In addition, the depressed market
for engineers is already discouraging students from going into engineering fields.
- IT Week (United Kingdom): IBM
moves to promote offshoring. Restructuring at IBM will lead to more packaged offshore
By James Murray. Excerpt: IT managers may face increasing pressure to use packaged
offshore services, following IBM's decision to restructure its European services organisation.
Analysts said the savings that can be generated by such services mean that in some
cases companies not following this model may become uncompetitive because they will
have higher costs. [...] "Some work should be done close to the client, but other
work can be done from any location," said IBM chief financial officer Mark Loughridge
in a webcast. "We will consolidate operations where feasible, create standard
approaches and repeatable processes, and enable skilled professionals to provide support
across functions." [...] But Tim Jennings of analyst Butler Group said firms should
resist the temptation to use packaged outsourced services where their internal IT department
is still adding value. "If an area of IT gives the firm a competitive advantage
you are better off ploughing your own furrow and keeping it in-house."
|Vault Message Board Posts
Sample Questions (for an IGS applicant to ask during a job interview), by "howard
stern". Full excerpt: 1) Why do you think IBM hired McKinsey to do their strategy and change
work? 2) Are you comfortable with only being reimburse on expenses up to the IBM defined
rate? You then get to pay any difference (up side only) from your paycheck. 3) What kind
of strategy is BCS using when they are asking employees to:
Or is this simply falling over backward to hit a number? 4) Do you have any expectation
of a promotion? If no then IBM is for you. 5) Do you actually plan on receiving a bonus?
IBM says no.
- Work an extra 6-8 hours a week if it can be charged to a client.
- Not take any vacation if you are billable.
- Make up any vacation around memorial day.
- Has a bench of 17 people in a consulting business?
- Running a utilization rate of 85% to hit the number?
- Cancelling training until 3Q.
- Delaying start dates of new hires until 3Q.
Is Bliss" by "LongGone1998". Excerpts: Here’s
my situation: I’ve been pursued by IBM BCS to come back to the fold, and initially,
it was a tempting proposition (history is often viewed through rose-colored glasses…I
left in 1998). However, after reading this board, making an honest assessment of the
situation, and asking the tough questions of the recruiter (and observing their lack of in-depth
answers and how poorly they operate), it became clear to me that what I read here is not an
anomaly, but reality).
If its helpful, ignore the color commentary by some of the posters and look at the content
of each post.
If you’re a seasoned consultant, you will understand that it is so much easier to put
up with client and travel crap when the perception of company support is there. Back in
the day, PwC expense and travel policies were very generous (even before the bubble). In the
heat lamp of SOX and quarterly earning, such niceties are hard to justify, so hence the tightening
of the belt.
- Career Management - by any measure, careers have stagnated at IBM BCS. [...]
- Personal financial growth - by any measure, salaries and bonuses are non-existent. Given that you
won’t be legacy PwC, you won’t be experiencing the salary cuts. However, you have ask
the recruiter about how often bonuses have been paid out and how much if your bonus dependent on
factors outside your control. Then come back and say that you will experience personal financial
growth within BCS.
- Culture – BCS has just announced 13,000 job cuts. Sure, CandorSense and others will argue
that is driven by market forces, and I (along with Dose/ABC/C2L) will gladly support that market
forces dictate strategic job cuts (Candor will really get worked up, however, on the whole H1B/L1
topic, though). How does that create a stable workforce, especially when you throw in all of the
other internal politics and expense policy changes?
all career masochists" by "Dose of reality". Excerpts: Specific
facts that support a decision to avoid IBM:
- Absence of raises the last three years.
- Zero bonus the last three years.
- 90% utilization targets.
- Unachievable profit targets.
- Extra billing hour mandates.
- Restrictive travel policy that fails to differentiate
between client reimbursable expenses and internal non-reimbursed travel.
that our “independent” consultants have to force feed
IBM products and services to clients regardless of fit.
- Cumbersome performance
evaluation system with quotas that place the vast majority of staff in the “nice
try, thank you for playing, better luck next year” category.
- Stifling finance,
legal, and HR bureaucracy.
- Host of implicit and explicit barriers to promotion.
'Sore Losers'?? Are you high?"
By "howard stern". Excerpts: Negative comments by former PwC consultants have nothing
to do with being sore losers.
The comments have to do with the breathtaking incompetence of IBM management in running
a consulting business.
The vast majority of ex-PwC people wanted the hostile takeover to succeed. Why would
people stay 2 years? To give the new situation a chance.
However - IBM has run BCS with an absolute ineptitude and incompetence that is shocking.
IBM BCS in a word - Incompetent
- IBM spent $3.5 billion purchasing PwC Consulting, a services company without physical assets. IBM
proceeds to institute a policy of miniscule raises, takes away career advancement opportunities resulting
in run away turnover.
How does this "strategy" make sense from an investment perspective?
- IBM is not instituting any type of retention program for money making segments. Making sure people
stay in areas you are making lots of money in is business 101.
How does this make sense?
- Running the business to "make the quarter" rather than have a strategy.
This quarter IBM is requiring extra billable hours if they can be charged to the client. The implication
is that on fixed price jobs eat the hours.
IBM is requiring that people "make up" memorial day holiday vacation. Doesn't Memorial
day happen every year? The vacation impact should be predictable?
Training is on hold. New hire start dates have been pushed out to Q3.
How is this a strategy? These are acts of desperation!
- Turnover and replacement hires are impacting IBM's ability to deliver. Clients are becoming or
are aware of this. This further erodes the market value of the IBM brand and threatens rates!
- Massive bureaucracy - people cannot reach to specific client situations. More power is flowing
to the "overhead people" as a result of the expense policy changes. Why should IBM
HR manage client related expenses when the client is paying? There are reasons for these charges
(i.e. the client has a hotel / airline requirement). But no one at IBM thinks like that.
old Blue. Lessons learned" by "HeyChief". Full Excerpt: I spent 5.5 years
in IBM software group doing various happy things with various smart people. From there,
I took the plunge into the sick, sad pit that is BCS. I was lost in the depths until
recently, when I found my more satisfying and rewarding employment elsewhere. I include
here for your perusal some lessons I learned during my time in the bowels of BCS:
- The people less talented than you shall be called Team Leads.
- You may travel 6000 miles every week only for them to tell you that $30 is not a per diem,
it's actuals. Oh, and no car rental on fixed bids; so get on the bus, or its your own dime.
- Raise? What raise? Ex-colleagues report that this week it was announced that 50% of the
group is not getting a raise. This on top of raises being pushed back two months to save
a few more nickels.
- The word of somebody who's been with the company 3 months will take precedence over you;
even with your 6 year tenure, b/c your boss has 100 employees, 90 of which they've never
met. This is without the benefit of being asked your side of the argument.
- Bonus? What bonus? Work 50% harder and get a 3% higher bonus. The handbook forgot to include
the law of diminishing returns.
- Take all your vacation and you'll miss your 93% utilization target (no exaggeration here)
by 7.5%. You might make it up on your own time if you get on a gig that allows overtime and
you're not too tired from traveling across the continent.
- Your work is being rapidly replaced with cheaper labor from India and China.
- The emphasis is on doing it now rather than doing it right.
- 15% of the people in BCS are doing 100% of the (shoddy) work. The rest are there for decoration
and billing purposes.
- Professional development is a veritable impossibility. PBCs and IDPs are a total joke.
Your evaluation will not reflect your job performance in any way.
- When (not if) the system goes down, nobody will know how to fix it.
- You will be treated as a RESOURCE, not a PERSON.
IBM used to be, isn't anymore" by "Frank_Reality". Full excerpt: t used
to be that IBM was an exemplary, world-class, enlightened employer that treated its employees
fairly, honestly and with respect. You'd work very hard, but you would be rewarded for
that hard work.
That no longer is the case. Respect is gone. Fairness is a myth. Honesty is a joke. Loyalty
There is no such thing as having a career for the vast majority.
Consider 15 years of benefit takeaways, the last 5 to 6 years with woefully underfunded salary
plans, 5% quotas for promotions, chronic and constant layoffs, multiple attempts to
steal pensions from experienced employees, and bonus plans based on unreasonable and unachievable
Why work for an anorexic, mentally ill corporation when there are better alternatives?
have to love this one!" by "Joe Dirt". Full excerpt: As Ginni Rometty
has stated in her 2Q address, BCS is taking action to recapture momentum and get our
business back on track. Across the company, individuals and teams are committing themselves
to making the necessary changes to put us in a position to deliver on our promises.
To drive revenue and profit during this critical time, we are asking
for your assistance in the area of scheduled time off, as follows:
- If you are currently engaged in billable work, and currently do not have scheduled vacation
time in June, please be aware that we will not be able to accommodate any requested time
off, except for exceptional circumstances.
- If you are not engaged in billable work, and are currently on the bench, we encourage
you to take vacation at this time.
- If you have previously scheduled vacation in June, and you are currently engaged in
billable work, we'd ask for your consideration in rescheduling your time-off for
This is a voluntary request, and without question, may or may not be difficult to execute
on given the time of the year. That said, we appreciate your understanding and support
as we pull together – all of us – to make sure we meet our goals in second quarter.
I hope you can help, and urge you to do so.
Please know that we appreciate all that you're doing to personally help to make second quarter
a breakout one for BCS.
|Coverage on Social Security Privatization
- AARP: Future Shock. Is the
latest Social Security proposal for indexing benefits ‘progressive’ or
a body blow to the middle class? By Thomas N. Bethell. Excerpts: Looking ahead to 2055,
the CBPP found that the combined cuts would be devastating. Medium earners would see
their projected benefits slashed by 66 percent. Higher earners would face an 87 percent
can’t believe this is the right way to go,” says Colleen Fisher, a 33-year-old
marketing consultant in Washington. “Social Security was enormously important for my
grandparents, and I’m paying into it now with the hope that it’ll give me some
real help someday. But when I look at Bush’s plan and think what it would mean to my
son, Teddy, it’s a terrible gamble. And we shouldn’t be gambling with Social Security.” [...]
Ball believes that long-term solvency can be maintained with modest revenue increases
alone, and that Bush’s price-indexing plan, if enacted, would inevitably lead to a fatal
erosion of public confidence in the program.
“It really changes the entire philosophy of Social Security,” he says. “Instead
of partially replacing a worker’s earnings, it gradually becomes a welfare program
paying the same flat benefit to everyone—while protecting only the poorest 30 percent.
I can’t imagine people continuing to support it, once they realize that the more they
contribute, the less they’ll get.”
- Economic Policy Institute: Social
Security price indexing proposal means benefit cuts for workers. By William E. Spriggs
and David Ratner. Excerpt: Much has been made of the recent Social Security proposal put forth
by Robert Pozen, a member of Bush’s President’s
Commission to Strengthen Social Security, and endorsed by President Bush. Pozen’s suggested
changes to Social Security include blending the current wage indexing of benefits with
price indexing, a shift that will reduce Social Security benefits for middle-income workers
by 22% in 2055 and by 28% in 2085. Indeed, the Pozen proposal will lead to substantial
and ever increasing benefit cuts for well over 70% of Social Security beneficiaries, including
retirees, widows, and surviving children.
Earlier projections discussing implications of the effects of Pozen’s proposal concern
only workers who are either very young or not yet born. As a result, the cost of price
indexing for current workers has been missing from the debate. These new estimates focus on current
workers and, while remaining consistent with the proposal’s long-run projections, show
substantial benefits cuts under the Pozen plan for them as well. These expanded numbers
also include estimates for each state for different ages and national estimates for race,
gender, and marital status.
on the Alliance@IBM Site:
- Alliance@IBM: Attention IBM employees: IBM
is blocking e-mail to and from the Alliance@IBM e-mail address email@example.com from
inside the company. Please send your job cut information and other correspondence from
your home e-mail. You can also contact us the following ways: Phone 607 658 9285 or Fax
607 658 9283.
- IBM Pension
Lawsuit FAQ about Cooper v IBM,
Updated 6-2-05. Excerpt: Below is a list of frequently asked questions about the class
action lawsuit against IBM's 1995 and 1999 pension plans. The answers are my personal
opinions, have not been verified with either IBM or plaintiffs’ counsel, and
should not be construed as legal advice.
On July 31, 2003, a federal district court judge ruled in favor of the employees in
this case. IBM will appeal portions of the ruling.
On September 28, 2004, IBM and the legal team on Cooper v IBM announced that an agreement
had been negotiated that settles some of the claims and set the amount of damages that
IBM will pay to the class if IBM's appeal of the district court's age discrimination
rulings is unsuccessful.
Click on any question to jump to the answer. Or scroll down and read them all.
Action Tool Kit. Along with the CWA
Job Survival Kit, here are
some resources you can use
when challenging or questioning a company policy, procedure or practice.
- Reduction in Workforce actions (RIF)...
- Escalations, Appeals and Skip level meetings...
- Implied contracts vs. Employees at Will...
- In General...
- Indianapolis Star: WellPoint
to shift 380 jobs to IBM.
Information technology personnel will retain seniority in change and won't need to relocate. By
- Indianapolis Star: Indiana
utility shifting jobs to IBM. Excerpt: NiSource
Inc. has told many of its employees to submit resumes for jobs with IBM as the utility
prepares to outsource possibly hundreds of jobs to the computer company.
A letter to employees this week from NiSource President Robert Skaggs Jr. told them
that they had two days to seek jobs with IBM. NiSource plans to outsource jobs to IBM
in a move that will be worth up to $2 billion to the computer giant over 10 years.
Cuts Status & Comments
Page. Excerpts: Job cuts are coming. Information needed:
What is Your location?
How many job cuts at your location?
What locations are cutting jobs?
Name of Division and Business Unit?
Some sample submissions follow:
- Yesterday (5/26/05) brought more resource actions, as they call it now, to
the RTP and Atlanta CSO organizations. The numbers are not known at this time, but it's a take
from the USA and give to Brazil job action again. The vendors are gone; the contractors are
gone, so now it becomes a true blue IBMer that will go. We continue in the SAM era of adjusting
the bottom line by getting rid of those that really care, instead of properly fixing the bottom
line by going out and getting new business. WOW
- Layoffs in Austin have suddenly stopped.....don't have a clue why.
Heard that in another area in Austin there had been individual appointments scheduled
between each employee and 1st and 2nd line managers on an entire team for a week
solid. All of those appts were suddenly cancelled -- no explanation.
What the heck is going on???? Do they not realize that this is only frustrating
us even more? Morale is already at an all-time low...
- I just got my call from my manager. I have 60 days to find another
job in IBM (chances for that are between slim and none) and then I get separated
with the 1 week for each 6 months. I'm not shocked. I knew this would be coming eventually.
I'll try to see if any connections can find me something, but they may be in the
same boat. They think I'm going to turn over everything to an outsourced replacement.
Right. I'll turn over the obvious stuff, but I'll leave the nuggets out, so next
time they have a real problem to fix, they'll be screwed.
- IBM workers need to act while they still have some leverage! If
IBM customers call for support and can't get it, they will pressure IBM management.
If they complete their offshoring plans, it will be to late for IBM employees who
- 6 Job cuts in Seattle on May 31st. IGS Customer Engineers.
- IGS AMS had a layoff on 5/31 in which about 6 people that I personally
know, thus far, were terminated. These are IGS AMS employees. Some have until the
end of June to find another job within IBM. Others have until end of July. Yesterday,
those of us remaining were individually told that we were not affected. Of course,
we were not told who was affected nor the numbers.
- Get out while the gettin' is good. I was let go from EODT/CHQ this
week. IBM is axing all the people who do work. You're just a number on a spreadsheet.
The way IBM is heading, there won't be any customers left to support, and no company
- I moved into this job 6 months ago and I was told what an excellent
match my skills were and how grateful they were to have someone like me join the
BTE. On 5/31 I was told that my skills no longer matched in the BTE and I was no
longer needed at IBM. I have been at odds with the BTE management over the way they
run their WW applications without any funding and how they are not business controls
or SOX compliant. I know for a fact of several applications that are feeding incorrect
data directly to the ledger. I also know that the BTE management is well aware of
these same problems. I will be making Internal Audit and PwC aware as well before
I leave. I have 30 days to find a non-existent job within IBM. I have also heard
of 6 others in my group that were also laid off. However, none were the incompetent
ones that can't do their daily jobs without our help. Instead we are all the ones
who challenge management on their lack of abilities.
- Guys! is your web site kidding with 607? These numbers
are in thousands. Consulting, Support, BTO, everywhere people are losing jobs. Most
people are getting 1 week severance for every year of service. Few did not get
- I was cut on May 31st also as part of the CHQ cuts. I know of 5
others who were cut as well. I was told that I was surplus and I would have the opportunity
to look internally but if I was unable to find a job by 6/30/2005 I would receive
the usual 2 weeks for every year. We will probably never know the total number but
I was told that 30% of the CIO's office was being cut.
- Second round, more job cuts in BCS-Federal. No one, at my low level,
knows how many but I personally know of 6 very good people that were laid-off.
- Newly acquired LIS in South Carolina had mass layoffs on 5/31. I
don't know how many employees were affected (I was one of them). We were given our
90 day notice. Before this we had to train our replacements in India.
- Several hundred jobs including systems engineering, development,
and test were transferred from AT&T to IBM in Middletown NJ. This represents
the vast majority of the development projects at AT&T Labs effective 6/1/05.
The subsequent offshoring of these jobs to India has already begun. Both AT&T
and IBM are keeping the numbers a secret.
- I understand that the lay offs in the BTE and BIE were very deep.
As a 2+ employee, who was recently told I was critical to the organization, I, too,
am out of a job. Reason - the job has gone away. I do have to wonder if my age (55),
years of service (30) and a medical condition had any influence on this decision.
- IBM Global Financing (IGF) announced on May 31, 2005 a resource
action plan to permanently layoff 65 full-time employees (sales, staff, admin.) across
the country. Very interesting in that over 50% are over 50 years old and no managers
seem to be part of the layoff. Existing employees are fearful of more layoffs if
2Q results don't improve.
- Hello, I've just discovered your site and it is excellent! There
were national job cuts on Tuesday May 31, 2005 for IBM Global Financing Employees
(IGF) in the U.S. The resource program is called GFAS (IBM Global Financing Americas
and Supporting Functions Resource Action). It appears to be about 64 people (sales,
staff, support, etc.) throughout the country. Many of the employees (slightly over
50%) dismissed are around 50 years old and the layoffs are permanent.
- Talk about cut-throat. I've confirmed from several sources that
Software Group in RTP will commence with their layoff plan on Monday 6/6. The reason
for the delay is because they wanted to wait until a product (WAS 6.02) was completed
today. Use us up, spit us out. A question for investors. Is this the kind of company
you want to invest in?
- I also feel like I'm a victim of age discrimination. I have been
in my current dept. as a rehire since it started in early 2001 (I was "downsized" in
1993 too). I was the ONLY one targeted and let go in my department and am also the
oldest at age 55. I have been one of if not the hardest worker day in and day out
in the dept. and have more skills than some of the regulars hired in the last 6 months.
They cut 4 contractors in April but all the rest are staying. And our dept. has plenty
of work and is bringing in more. At our dept. meeting this week my manager said more
will be coming into our dept.
IBM is also screwing me on severance pay. I have a total of 16 years with the
company but they will only base my severance on newest date of hire which was 2001.
That means all I get is 8 weeks pay.
- My OWBPA Report Div 5 BCS May 31, 2005 has a total of 193 Positions.
BTO 57, Public Sector 43, Learning and Knowledge 23, BCS Finance 19, Americas Strategy,
Marketing & Oper 27, Comms Sect 4, Dist Sect 4, Ind Sect 8, Fin Sect 3 Supply
Chain 1, Alliances & Emering Bus 1, SMB 1. Also in my OWBPA report are the Resources
actions from May 16, 2005. Div 5 BCS. Total 166. BTO 19 and Public Sect. 147. The
total for BCS in May 2005 359. What just kills me is that I was a 2+ but I was not